Chinese Port Operators Target Shadow Fleet Tankers
Several terminal operators in China‘s Shandong province plan to ban entry to old vessels and those with fake or suspicious certificates in a move aimed at the shadow fleet, Reuters reported on Friday.
The terminal operators Qingdao Haiye Oil Terminal Co, Qingdao Shihua Crude Oil Terminal Co, Qingdao Gangxin Oil Products Co, and Qingdao Lixing Logistics Co issued an official notice for the Huangdao Port last week. The communication, seen by Reuters, will ban tankers operating for 31 years or more and vessels using fake International Maritime Organization (IMO) identification numbers from docking at the terminals of the Huangdao Port, effective November 1.
The Huangdao Port is part of the greater Qingdao port area, which serves as the key entry point of Iranian oil into China. Iran continues to be the main customer of China, purchasing more than 90% of its oil exports.
Vessel Requirements and Restrictions
In addition to banning old vessels and those with fake certificates, the terminal operators at Huangdao Port will also deny entry to tankers with invalid or expired certificates from international certification and regulatory bodies. Vessels with a record of accidents or pollution for the prior three years will also be prohibited from docking.
The notice comes a month after the U.S. sanctioned two Chinese crude oil terminals and storage operators as part of its efforts to disrupt Iranian oil exports and the shadow fleet enabling them.
Impact on Flows
However, experts believe that the measures implemented by the Huangdao port operators may not have much effect on flows, as Huangdao has a minor role in handling the shadow fleet compared to other ports in the Qingdao area. Emma Li, China analyst at tanker tracker Vortexa Analytics, told Reuters that the new tanker risk-rating rules appear to be a precautionary step driven by environmental concerns and rising U.S. sanctions pressure.
Iranian Response
Meanwhile, Iran appears unfazed by the prospect of UN snapback sanctions coming into effect this weekend, stating that it will continue to sell its oil to China, its biggest and nearly only buyer.
Original Article: Chinese Oil Import Port Targets Shadow Fleet Tankers — Oilprice